Advantages of Mutual Funds
The advantages of investing in a Mutual Fund are:
* Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.
* Professional Management:Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell.
* Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud.
* Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call, and you've got the cash.
* Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet.
* Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy stock in companies that are listed on a specific index
* Transparency
* Flexibility
* Choice of schemes
* Tax benefits
* Well regulated
2006-11-27 04:51:37
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answer #1
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answered by Anonymous
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its divident will be exemtion from incom tax. and you get maximum profit other than any investing. you will make invest in not single fund select good more than 5 to above . it is good chance for average benifit
2006-11-27 11:28:22
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answer #2
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answered by keral 6
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It is the benefit you will derive from the underlying assets of the funds, ( debt, equity commodity) carrying average and lower risk than direct investment in such assets.
2006-11-27 14:20:23
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answer #3
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answered by cvrk3 4
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personally id rather own 5 high dividend paying stocks than mutual funds. good luck
2006-11-27 04:54:19
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answer #4
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answered by godzillasagoodman 2
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You outsource the area which you do not want to handle either due to expertise , time constraint , high value investment where seriousness is mandatory and not enthusiasm , hence it makes sense to these fraternity to outsource through an organisation trained & experienced to handle this work competently on your behalf
Vivek Rege
Certified Investment Advisor ( AMFI & IRDA)
Contact Numbers : Cell 9322240424 , Office : 022-56281742 , 02224333281
Web site : www.vivekrege.com
E-mail : info@vivekrege.com
“We help you create & Nurture Wealth
2006-11-27 17:25:55
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answer #5
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answered by vvek23 1
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if you have surplus money and don't know how to invest in stock market,Mutual funds do that for you.
2006-11-27 04:29:24
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answer #6
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answered by tenderboy 2
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More money for your grandchildren, children and for you.
2006-11-27 07:57:57
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answer #7
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answered by Anonymous
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